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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Dragon Oil - Net cash 36% of market value

March 2013

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • DGO
  • Price:
  • 593p
Investing in the oil sector can be treacherous for those who take on extraordinary risks while searching for that elusive multi-bagger and the biggest mistake is to back tiddlers with plenty of dreams and not much else, given that it only takes a couple of dry wells for them to run out of money. While it may seem counter-intuitive, quite often the greatest gains can be achieved investing in much larger producers with a strong growth record and Turkmenistan-based, Dragon Oil, fits this description perfectly. Dragon sports a fantastic trading record with profit after tax increasing from US$28.8m in 2003 to US$600m last year while earnings have risen from just US8 cents to almost US120 cents (75.9p) and we believe the stage is set for a str ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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